Which of the following is true?

Question

Quizplus · Accepted Answer

A principal can be bound on contracts made by an agent even if the principal's identity is not disclosed to the third party. This is known as undisclosed principal doctrine. The agent must have the authority to act on behalf of the principal and the contract must be within the scope of the agent's authority. Ratification also allows a principal to be bound by a contract made by an agent, but this occurs after the contract has already been made. Therefore, option D is incorrect as it suggests that a principal cannot be bound through ratification. Option A is incorrect as an undisclosed principal can still be bound to the contract.

Which of the Following Is True